Uzbekistan Bans Crypto Purchases

The government of Uzbekistan came out with an announcement that crypto purchases within the country will now be considered illegal by all means. This was shocking news for the local crypto investors because the country was seemingly heading towards a more crypto-friendly reality.

Crypto purchases have been banned even on accredited crypto exchanges within the country, as well as foreign companies. However, crypto trading still remains within the ramifications of the law. What this means is that people who already have cryptos in their portfolio will be allowed to trade their assets on a much more restricted level. This means that not every coin will be available and the trade sizes will be limited.

The government also mentioned that they will allow the withdrawal of crypto assets as fiat currencies from local crypto exchanges, but only after every trader undergoes strict identity checks in order to prevent money laundering.

According to several market experts though, this new ruling is not going to be effective in any way. The goal is to prevent additional investment in cryptocurrencies within the country, but it will only focus now on “illegal” investment in this market. Uzbeki traders have the opportunity to simply hide their identity online while using a VPN and transferring funds from their cold wallets rather than hot wallets. It’s still unknown how the Uzbeki government will handle these hurdles.

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